2015 (5) TMI 612

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..... ee had not purchased or sold any of the shares of M/s. Magma Shrachi Finance Ltd. during the relevant previous year. We also find that Assessing Officer had not made any disallownace for interest. While applying Rule 8D(2) Assessing Officer had only made a disallowance under Clause [iii] thereof. Thus, he has accepted that no loan funds were used by assessee for the purpose of making the investments. Investments made by assessee during the relevant previous year was ₹ 1,96,69,793/- only. When viewed from this angle, we cannot say that the suo motu disallowance of ₹ 88,390/- made by assessee was incorrect or unbelievable - Decided in favour of assessee Disallowance of interest as non allowable expenditure - ITAT deleted the ad .....

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..... B Bench, Kolkata in I.T.A. No.1101/Kol/2012 and I.T.A. No.1528/Kol/2012 for the Assessment Year 2008-2009 on the following questions:- i) Whether on the facts and in the circumstances of the case the learned Tribunal was justified in allowing relief to the assessee under Section 14A of the Income Tax Act, 1961? ii) Whether on the facts and in the circumstances of the case the learned Tribunal was justified in law in deleting the additions made by the Assessing Officer on account of treating interest as non allowable expenditure under Section 36 of the Income Tax Act, 1961? iii) Whether on the facts and in the circumstances of the case the learned Tribunal was justified in law in deleting additions made by the Assessing Officer o .....

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..... direct acquisition done by assessee. Therefore, for making such investment and for holding such shares, it cannot be said that assessee would have incurred substantial expenditure. Assessee had not purchased or sold any of the shares of M/s. Magma Shrachi Finance Ltd. during the relevant previous year. We also find that Assessing Officer had not made any disallownace for interest. While applying Rule 8D(2) Assessing Officer had only made a disallowance under Clause [iii] thereof. Thus, he has accepted that no loan funds were used by assessee for the purpose of making the investments. Investments made by assessee during the relevant previous year was ₹ 1,96,69,793/- only. When viewed from this angle, we cannot say that the suo motu di .....

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